Auditing standard setters are trying to find a way for auditors to communicate with investors but are struggling to find the proper mechanism. During the first of two days of public hearings on the PCAOB’s proposal for changing the auditor’s reporting model, a handful of panelists said Wednesday that the
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Audit & assurance
Embracing the automated audit
Technology is changing the way audits are being performed, with greater access to data but also more data to sort through. Auditors can remain efficient and effective by employing applications designed to help automate some procedures.
Alignment is key for internal audit to deliver more value
The demands on internal audit have increased significantly in recent years as technology has advanced, regulation has become more rigorous, risks have emerged, and companies have sought more business insights from internal audit teams. “That bar continues to rise,” FedEx Chief Audit Executive Robert King, CPA, said Tuesday during a
PCAOB reaches agreement with Swedish audit regulator
The PCAOB and the Supervisory Board of Public Accountants of Sweden have entered a cooperative agreement in their oversight of audit firms, the PCAOB announced Monday. The agreement takes effect immediately and provides for joint inspections while allowing for the exchange of confidential information. An agreement on data protection also
Regulation demanding increased internal audit focus
The push continues for internal auditors to focus on strategic risks, but regulatory compliance duties are standing in the way, a new survey shows. More than two-thirds (69%) of 433 internal audit professionals in the United States surveyed by Grant Thornton said regulation is increasing internal audit costs in their
Auditors have important role in cybersecurity
The steady stream of headlines about data breaches has the business community and regulators on high alert with regard to cybersecurity. An online PwC survey of global executives and IT directors conducted early in 2013 found that detected cybersecurity incidents rose 25% over the previous year. And 31% of executives
Stop using “audit failure” term in PCAOB reports, Hanson says
The PCAOB’s use of the term “audit failure” in its inspection reports of audit firms appears to have caused confusion and misunderstanding about the severity of inspection findings among investors, audit committees, and others, PCAOB member Jay Hanson said Wednesday. Hanson said he is troubled by the PCAOB’s use of
Internal auditors racing to keep pace with technology
Internal auditors have a strong desire to know more about emerging technologies and improve the way they use technology to perform their duties, a new survey shows. Mobile applications and social media are among the top areas of technical knowledge that internal auditors most need to improve, according to a
Auditing
The European Union took another step toward a mandatory audit firm rotation requirement when the member states’ Permanent Representatives Committee approved new audit regulations. The new regulations and amendments approved include a requirement that public-interest entities rotate engagements with audit firms every 10 years—with provisions for longer periods when
PCAOB to hold round table on auditor’s reporting model
The PCAOB will seek feedback on its auditor’s reporting model proposal during a public meeting to be held April 2–3 in Washington. Panelists will be invited to share their views with the board on the proposal, which would include a requirement for auditors to identify and describe “critical audit matters”
New international framework takes broad look at audit quality
A new international framework for audit quality takes a broad look at how the stakeholders in the audit process can work to make audits better. The International Auditing and Assurance Standards Board (IAASB) released Tuesday a framework that is designed to encourage auditors, audit clients, audit firms, regulators, and others
The scoop on group audits: You may have them, even though you think you don’t
As Vince Lombardi said, “Individual commitment to a group effort—that is what makes a team work, a company work, a society work, a civilization work.” I would add to this that an individual firm’s commitment to group audit considerations makes audit planning work. Simply stated, group audits are audits of
ASB proposes amendments to clarified auditing standard on letters for underwriters
The AICPA Auditing Standards Board (ASB) proposed amendments Thursday to AU-C Section 920, Letters for Underwriters and Certain Other Requesting Parties. AU-C Section 920 was issued as part of the ASB’s clarity project and is a redrafting of AU Section 634 of the same title. When the clarified standard was
ASB issues clarified auditing standard on using the work of internal auditors
With the release of a new auditing standard addressing the external auditor’s responsibilities if using the work of internal auditors, the AICPA Auditing Standards Board has completed the clarity redrafting of its final AU section in AICPA Professional Standards. Developed using International Standard on Auditing 610 (Revised 2013), Using the
Lessons learned: Practical tips to help avoid common EBP audit and reporting errors
Employee benefit plan auditors can use this guidance to avoid relying on improper certifications or overrelying on certifications from trustees or custodians, which can result in inappropriately limiting the scope of the audit.
PCAOB extends comment period on engagement partner ID proposal
The PCAOB has extended the comment period on its reproposed standard that would require the engagement partner and certain other participants in the audit to be identified in the audit report. The new deadline is March 17; the original deadline was Feb. 3. The board reproposed the amendments in December.
ASB exposes additional clarified standards as part of attestation clarity project
Changes proposed Tuesday by the AICPA Auditing Standards Board (ASB) would restructure the content of several important attestation standards. The ASB has issued a second exposure draft as a result of the attestation clarity project. The exposure draft contains three proposed clarified subject-matter-specific standards. Proposed Statement on Standards for Attestation
European audit reform proposal moving forward
April is the forecasted date for a vote of the full European Parliament on European Union audit market reforms, which took another step in the legislative process this week. The EU Legal Affairs Committee voted 13–8, with one abstention, on Tuesday to approve a draft agreement between Parliament and the
Preparers oppose PCAOB’s plan for more auditor disclosures
The message from financial statement preparers to the PCAOB about the content of audit reports is clear. Preparers don’t want their responsibilities usurped by auditors. “While some investors may desire improvements in disclosures, the proper source of this information is management and not the auditor,” Fedex Corp. told the PCAOB
TPA addresses use of current auditing standards for audits of prior periods
The AICPA has issued nonauthoritative guidance addressing the use of current auditing standards for audits of prior periods. According to Technical Question and Answer (TPA) 8100.03, when an auditor is engaged to perform an audit of financial statements that are as of or for a period that ended prior to
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